The "perfect information" assumption of perfect competition includes all of the following except one. Which one?
A) Consumers know their preferences.
B) Consumers know their income levels.
C) Consumers know the prices available.
D) Consumers can anticipate price changes.
E) Firms know their costs, prices and technology.
D
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Goods that can be bought in any quantity desired are called
A) divisible goods. B) indivisible goods. C) invisible goods. D) inferior goods.
In determining wages, ability, effort, and chance
a. probably play no role whatsoever. b. play a role, but their importance is hard to gauge since ability, effort, and chance are hard to measure. c. play a role, and that role is fully captured in easy-to-measure factors such as human capital and age. d. play a role, and it is fully explained within the context of compensating differentials.
If a pollution tax imposed on a firm is greater than its external cost:
A. the externality will be fully internalized. B. the social production cost will increase by the amount of the pollution tax. C. the pollution tax will be efficient. D. from a society's point of view, the firm will be producing too little.
A total cost curve shows the ________ of producing each level of output.
A. optimal input combination B. maximum cost C. minimum cost D. marginal cost